Negotiating Your Property Purchase


There is no doubt that negotiating price on property is a challenge. An objective strategy and reliable information will help you make the most appropriate offer.


Here is a checklist:

  • Check the agency’s price guide against a Comparative Market Appraisal report. This will tell you how much homes of a certain size, within a set radius, have sold for. 
  • Get a property valuation by an independent and certified valuer. 
  • Find out as much as you can about the vendor so you can appeal to their emotions. 
  • Determine whether there is anything, such as a short settlement term, that can be traded for price. 
  • Work out a price based on objective evidence then decide its value to you. 
  • If the property is exactly what you want, declare your maximum price in writing at the beginning, and be prepared to walk away. 
  • Buying and selling homes can become emotional. The more objective you can be, the better you will be able to manage the process of negotiation. 
  • Even once you have negotiated your price and paid an initial deposit, you do not own the property – you can still be gazumped. Only once you have signed, exchanged contracts and paid the minimum deposit required under contract are you the homeowner

 

Key questions to ask of the vendor:

  • Why is the vendor selling?
  • How long have they owned it?
  • Have they purchased another property?
  • What are their preferred settlement terms?
  • Is the property owner-occupied, an investment and/or tenanted?
  • How long has it been on the market?
  • Have you had any offers?
  • Is the vendor testing the property market?